At December 31, 2014, Navaro Corporation reported the following plant assets.

P9-2A At December 31, 2014,
Navaro Corporation reported the following plant assets.

Land

$ 4,473,000

Buildings

$30,940,000

Less: Accumulated
depreciation—buildings

17,780,175

13,159,825

Equipment

59,640,000

Less: Accumulated
depreciation—equipment

7,455,000

52,185,000

Total plant assets

$69,817,825

During 2015, the following
selected cash transactions occurred.

Apr.

1

Purchased land for $3,280,200.

May

1

Sold equipment that cost
$894,600 when purchased on January 1, 2008. The equipment was sold for
$253,470.

June

1

Sold land for $2,385,600. The
land cost $1,491,000.

July

1

Purchased equipment for
$1,640,100.

Dec.

31

Retired equipment that cost
$1,043,700 when purchased on December 31, 2005. No salvage value was
received.

Journalize the transactions.
Navaro uses straight-line depreciation for buildings and equipment. The
buildings are estimated to have a 40-year useful life and no salvage
value; the equipment is estimated to have a 10-year useful life and no
salvage value. Update depreciation on assets disposed of at the time of sale or
retirement.

Record
adjusting entries for depreciation for 2015.

Date.

Account
Titles and Explanation

Debit

Credit

Dec. 31

(To record
depreciation on buildings.)

31

Prepare
the plant assets section of Navaro’s balance sheet at December 31, 2015. (Hint:
You may wish to set up T accounts, post beginning balances, and then post 2015
transactions.)